A Portuguese lawyer, Paulo Topa, has been detained in Porto by the Polícia Judiciária as part of an inquiry into funds embezzlement.

The arrest follows reports that the lawyer, along with insolvency administrators, is suspected of diverting around 10 million euros from distressed businessmen, with the police not detailing the destination in a brief communique but noting a possible flight risk.

The scheme allegedly involved creating fictitious credits and forged documents—including contracts and licenses—to approve recovery plans, suspend actions by real creditors, and dissipate assets.

Details about the interrogation scheduling were not provided by PJ sources at the time of reporting.

The detention occurred days after SIC reported that Topa and three insolvency administrators were suspected of diverting about 10 million euros from failing business owners.

The police said the destination of the embezzled funds was not specified in the official communique, but there was mention of a possible flight to Brazil.

The article notes that the detention followed SIC's reporting that the lawyer and three insolvency administrators were suspected of diverting 10 million euros; the PJ did not disclose the destination but flagged a possible Brazilian flight.

Prosecutors allege Topa acted with two other suspects detained in April and operated since 2016, within the framework of the inquiry.

SIC Noticias reported that an arrest warrant was issued due to perceived flight risk to Brazil, with the first interrogation to take place within 48 hours at the Porto Criminal Instruction Court.

The SIC investigation claims over ten years involved the creation of about 50 shell companies, forged credits, and recruitment of vulnerable people, including a homeless person, to serve as fronts.

The inquiry concerns an insolvency and company recovery scheme, with Topa and others suspected of aiding insolvent entities and facilitating asset misappropriation at creditors' expense.

Paulo Topa faces charges including active corruption, fraudulent insolvency, document forgery, and money laundering, and has previously been detained and released twice.